Solana

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THIS

Shiba Inu

dogwifhat

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 <p class="paragraph">In the face of a major correction in the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency market, traders and investors wonder whether the bull rally has reached an end. Some even ponder if the recent meme coin boom was an obvious local top <a rel="noopener noreferrer nofollow" title="signal" href="https://thebittimes.com/tag/signal.html">signal</a> for <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies.</p>
 <p class="paragraph">Bitcoin (BTC) reached new highs of $73,805 on March 14. However, the leading cryptocurrency sharply retraced below the previous all-time high of $69,000, impacting the entire market. Bitcoin comes from a remarkable performance with gains superior to 310% since January 2023.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="661" src="https://cdn.thebittimes.com/images/2024/03/18/163b4ca8e137dde62b8df7016604d709.webp" alt class="wp-image-161759" srcset="https://cdn.thebittimes.com/images/2024/03/18/163b4ca8e137dde62b8df7016604d709.webp 1024w, https://cdn.thebittimes.com/images/2024/03/18/163b4ca8e137dde62b8df7016604d709.webp 300w, https://cdn.thebittimes.com/images/2024/03/18/163b4ca8e137dde62b8df7016604d709.webp 768w, https://cdn.thebittimes.com/images/2024/03/18/163b4ca8e137dde62b8df7016604d709.webp 1536w, https://cdn.thebittimes.com/images/2024/03/18/163b4ca8e137dde62b8df7016604d709.webp 1875w" sizes="(max-width: 1024px) 100vw, 1024px">
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   BTC/USD weekly chart. Source: <em>TradingView</em> (Finbold)
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 <p class="paragraph">Meanwhile, other cryptocurrencies surged along with BTC’s rally and conquered relevant positions year-over-year. Solana (SOL) and Render (RNDR) were two projects that massively increased their market share in the past 12 months.</p>
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    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
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 <p class="paragraph">Following this positive trend, <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> traders suddenly experienced huge euphoria in a meme coin boom that raised concerns. The rising interest from the mainstream market in, the now popular, new meme coins has made investors wonder if this was a clear top <a rel="noopener noreferrer nofollow" title="signal" href="https://thebittimes.com/tag/signal.html">signal</a> to watch for.</p>
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    <p lang="en" dir="ltr">IMAGINE IF THIS ENDS UP BEING THE EXACT TOP OF THIS CRYPTO CYCLE https://t.co/9R0QFIYwfj</p>— GURGAVIN (@gurgavin) March 17, 2024
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 <h2 class="wp-block-heading" id="h-meme-coin-boom-in-2024">Meme coin boom in 2024</h2>
 <p class="paragraph">In particular, a meme coin named dogwifhat (WIF) has gained spotlights in 2024, accompanying an increased volume in DeFi. WIF is a token created on the Solana blockchain, similar to Bonk (BONK) – a previous meme coin success.</p>
 <p class="paragraph">Notably, WIF has made nearly 1,500% gains since launch, going from a $129 million market cap to over $2.5 billion in less than three months.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="462" src="https://cdn.thebittimes.com/images/2024/03/18/9f63ebb592c344738f673d337946d138.webp" alt class="wp-image-161757" srcset="https://cdn.thebittimes.com/images/2024/03/18/9f63ebb592c344738f673d337946d138.webp 1024w, https://cdn.thebittimes.com/images/2024/03/18/9f63ebb592c344738f673d337946d138.webp 300w, https://cdn.thebittimes.com/images/2024/03/18/9f63ebb592c344738f673d337946d138.webp 768w, https://cdn.thebittimes.com/images/2024/03/18/9f63ebb592c344738f673d337946d138.webp 1536w, https://cdn.thebittimes.com/images/2024/03/18/9f63ebb592c344738f673d337946d138.webp 1938w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   dogwifhat (WIF) market data. Source: <em>CoinMarketCap</em>
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 <p class="paragraph">Before Dogwifhat’s success, Dogecoin (DOGE), Shiba Inu (SHIB), Floki (FLOKI), and Pepe (PEPE) all had their moments with expressive gains. More recently, Book of Meme (BOME) made up to 200% gains in 24 hours after Binance listed it.</p>
 <p class="paragraph">This behavior could be compared to historical financial bubbles driven by greed and unsustainable price speculation, considering the lack of fundamental utility behind these tokens, described by finance experts as “the greater fool theory:”</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“The Greater Fool Theory is the idea that, during a market bubble, one can make money by buying overvalued assets and selling them for a proﬁt later, because it will always be possible to ﬁnd someone who is willing to pay a higher price. An investor who subscribes to the Greater Fool Theory will buy potentially overvalued assets without any regard for their fundamental value. This speculative approach is predicated on the belief that you can make money by gambling on future asset prices and that you will always be able to ﬁnd a “greater fool” who will be willing to pay more than you did. Unfortunately, when the bubble eventually bursts (which it always does), there is a large sell-oﬀ that causes a rapid decline in the asset values. During the sell-oﬀ, you can lose a great deal of money if you are the one left holding the asset and cannot ﬁnd a buyer.”</p> <cite>– Harford Funds blog post: “The Greater Fool Theory: What Is It?”</cite>
 </blockquote>
 <h2 class="wp-block-heading" id="fear-rises-in-the-market">Fear rises in the market</h2>
 <p class="paragraph">In this context, the professional trader and analyst <em>Ali Martinez</em> commented on a rising fear in the market. Martinez points out that Bitcoin’s recent price correction has brought a notable shift with a dominating negative sentiment.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="461" src="https://cdn.thebittimes.com/images/2024/03/18/aa9bf8dc822f2bc1f6058c429fd6f62d.webp" alt class="wp-image-161758" srcset="https://cdn.thebittimes.com/images/2024/03/18/aa9bf8dc822f2bc1f6058c429fd6f62d.webp 1024w, https://cdn.thebittimes.com/images/2024/03/18/aa9bf8dc822f2bc1f6058c429fd6f62d.webp 300w, https://cdn.thebittimes.com/images/2024/03/18/aa9bf8dc822f2bc1f6058c429fd6f62d.webp 768w, https://cdn.thebittimes.com/images/2024/03/18/aa9bf8dc822f2bc1f6058c429fd6f62d.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Weighted sentiment on Bitcoin. Source: Ali Martinez
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 </figure>
 <p class="paragraph">Nevertheless, this behavior is expected even in bull markets, as traders adapt to different circumstances and partially realize profits. These technical indicators are simply an effect of recent price action and things can change quickly in the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> landscape.</p>
 <p class="paragraph">All things considered, the meme coin boom has raised concerns about the sustainability of a yearly rally and investors are now more cautious than before.</p>
 <p class="paragraph">Yet, Bitcoin still trades above two strong support levels, while DeFi shows very positive growth data. Particularly regarding the $100 billion in total value locked on protocols and over $10 billion of daily volume on decentralized exchanges.</p>
 <p class="paragraph">As usual, traders must understand the volatile and unpredictable nature of cryptocurrencies and avoid making emotion-driven decisions.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/was-the-meme-coin-boom-a-top-signal-for-crypto-tbt82782.html">https://thebittimes.com/was-the-meme-coin-boom-a-top-signal-for-crypto-tbt82782.html</a></p>

Was the meme coin boom a top signal for crypto?

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